TIDMMLVN
RNS Number : 1293X
Malvern International PLC
25 August 2022
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
25 August 2022
MALVERN INTERNATIONAL PLC
("Malvern", the "Company" or the "Group")
Trading update
Capitalising on strategic investment as sector recovers
Malvern International plc (AIM: MLVN), the global learning and
skills development partner, is pleased to provide a trading update
for the six months ended 30 June 2022 ("H1"), ahead of announcing
its interim results in the first half of September 2022.
Malvern has seen a significant improvement in student numbers
and business pipeline in H1 with revenues around 60% ahead of H1
2021.
The Company is seeing the benefits of its strategic investment
over the last two years in its brand, sales and marketing,
management team, processes, partnerships, product s and student
offering. The Board believes Malvern is in a strong position to
grow its market share for the remainder of 2022 and beyond.
Pre-booked and delivered revenues for H2 2022 are showing a
three-fold increase on H2 2021 and are ahead of like-for-like
pre-pandemic levels of H2 2019. Pre-bookings indicate that the
Group can expect further growth in revenues in 2023.
Management continue to maintain strong cost controls as the
Group recovers from the COVID-19 period and continues to have the
option of BOOST&CO's ("BOOST") support for its working capital
requirements as required.
University Pathways
University Pathways has seen a significant increase in student
numbers for September 2022 and recruitment for January 2023 is also
looking strong. Around 230 new starters are joining our
International Study Centre at The University of East London ("UEL")
in September 2022, a significant increase on the 46 new starters in
September 2021. Approximately one third of this income will be
recognised this year and the remaining two thirds will be
recognised in H1 2023.
The increase is the result of the expansion of the international
sales team, improved processes to manage and convert the student
recruitment pipeline, and significant recruitment travel to key
feeder markets including joint marketing trips to India and Nepal
with UEL.
These markets are expected to grow further and, following the
recent reintroduction of priority and super priority visas in
India, the Group is currently projecting to have over double the
number of pathway students studying in our International Study
Centres in 2022/23 compared to the previous academic year.
Our NCUK centre is expected to run with a cohort of around
fifteen students in September 2022 with more joining in January
2023. The Board expect these numbers to build as the Group develops
a brand presence in the key regions of China, Nigeria and South
East Asia.
English language teaching ("ELT")
The ELT industry has bounced back after international borders
reopened following two years of travel restrictions. This is
evidenced through revenues across the Group's three ELT centres
during the Company's busiest summer period, coming in slightly
ahead of the pre-pandemic level in 2019.
The MENA market was the first big market to return. This was
helped by the Government's announcement in early May 2022 that
Saudi Arabia and Bahrain nationals can apply to travel to the UK
for tourism, business, study or medical treatment for up to six
months with an electronic visa waiver from 1 June 2022. The
initiative has made it easier for visitors from the Gulf to enter
the UK and is intended to deepen the UK's partnership with these
countries, enhance diplomatic ties and economic prosperity.
Looking forward, the Board is confident for the outlook for ELT
in 2023 and beyond. Malvern is currently working with the biggest
agencies in Brazil, Saudi Arabia, Kuwait and Italy, and the
pipeline of bookings is strong. The focus for the remainder of 2022
is to capitalise on the Group's momentum, to continue to foster
good relations and build Malvern's agent network across other key
regions.
Juniors
As expected the Italian funded INPS programmes went ahead in
July and August 2022. The Company delivered programmes to 976
students, generating revenues of c.GBP1.35m after two years of no
activity.
The team had a successful British Council inspection in July
2022. The feedback so far has been excellent with the formal report
due in September 2022. The next full inspection is due in 2026.
The Board feels that this is a great result and together with a
large increase in the number of agents working on behalf of the
Group, giving it a solid base to build on for 2023 and beyond.
China
China is the biggest international student market to the UK for
Higher Education provision and junior summer camps. In May 2022,
Malvern entered a five-year collaborative partnership with UEL to
be the preferred supplier of student recruitment services in
mainland China. The aim of this partnership is to "rapidly
increase" the volume of Chinese students enrolling on programmes at
UEL's three London campuses. Launch events have been delayed due to
strict COVID-19 lockdowns and travel restrictions. Nonetheless, we
are making good progress and Malvern now has two sales staff based
in China building the agent network, and the Group's marketing and
Chinese social media activities are being supported by a Mandarin
marketing officer based in the Company's London centre. The
recruitment of a head of sales in China is planned in H2 2022.
Malvern's first students are expected in January 2023 as part of
the 2022/23 cohort, with growth projected for September 2023 after
a full student recruitment campaign.
Cash and working capital
Cost control and cash flow management continues to be a focus
for the Group during this period of recovery. Following our debt
restructure in March 2022, the Board remains in regular contact
with BOOST, the fund manager acting on behalf of the Company's
debtholder. BOOST has reiterated its commitment to provide ongoing
financial support to Malvern for its short-term working capital
requirements should it become necessary.
Richard Mace, Chief Executive Officer, said: "The strategic
initiatives we have taken throughout the pandemic to navigate the
crisis, manage risk and improve the business are now bearing
fruit.
"It is pleasing to see confidence return to the international
study market now that travel restrictions to the UK have been
lifted. There remains strong demand for our education products, as
seen with international students travelling to the UK in numbers
again.
"I would like to thank the Malvern team and BOOST for their
support and hard work as Malvern continues to recover. For these
reasons, and with a significantly stronger and experienced
management team now in place, we remain positive about the outlook
for the Company."
For further information please
contact:
Malvern International Plc www.malverninternational.com
Mark Elliott - Chairman Via our website
Richard Mace - Chief Executive
Officer
WH Ireland (NOMAD & Broker) www.whirelandcb.com
Mike Coe / Sarah Mather 0207 220 1666
Notes to Editors:
Malvern International is a learning and language skills
development partner, offering international students essential
academic and English language skills, cultural experiences and the
support they need to thrive in their academic studies, daily life
and career development.
University Pathways - on and off-campus university pathway
programmes helping students progress to a range of universities, as
well as in-sessional and pre-sessional courses.
Malvern House Schools - British Council accredited English
Language Training at English UK registered schools in London,
Brighton and Manchester.
Malvern Online Academy - British Council accredited online
school, offering supported tuition to students from around the
world in English language, higher education, and professional
education.
Juniors and summer camps - fully-immersive summer residential
English language camps and bespoke group programmes for 13 to 18
year olds.
For further investor information go to
www.malverninternational.com
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